Taxation Laws Amendment Act (No. 6) 2001 (169 of 2001)

Schedule 5   HIH rescue package

Part 2   Goods and services tax consequences

A New Tax System (Goods and Services Tax) Act 1999

9A   After section 78-115

Insert:

78-118 Portfolio transfers

(1) If an insurer (the first insurer ) enters into an arrangement, in the nature of a portfolio transfer, with another insurer for the other insurer:

(a) to act as the insurer in relation to an *insurance policy; or

(b) to meet the first insurer's liabilities arising under an insurance policy;

this Division applies, from the time the arrangement takes effect, as if the other insurer were an insurer in relation to the policy.

(2) Without limiting subsection (1):

(a) anything done after that time by the other insurer that, if it had been done by the first insurer, would have been done under the policy is taken, for the purposes of this Division, to have been done by the other insurer under the policy; and

(b) sections 78-10 and 78-30 apply as if the other insurer were the insurer that supplied the policy; and

(c) section 78-18 applies as if the insurer that settles the claim referred to in paragraph 78-18(1)(b) or (3)(b) (as the case requires) has the *increasing adjustment under that section, regardless of which insurer was paid the excess to which the adjustment relates.